Mukesh Ambani wanted to dominate the market with Dunzo, why is he in a hurry to leave the company now?

Mukesh Ambani's company Reliance Retail had some time ago bought a large stake in quick delivery service company Dunzo. But now the situation is such that its officers are resigning from the board of Dunzo. What is the whole matter...?

Industrialist Mukesh Ambani wants to completely dominate the retail sector of the country. That is why he has invested heavily in retail stores ranging from ration to jewelery and e-commerce platforms like Jio Mart. Therefore, to gain a foothold in the quick commerce delivery segment which is becoming increasingly popular in the country, he bought 26 percent stake in Dunzo. In the market, it directly competes with services like Zomato's BlinkIt, Tata Group's BigBasket and Swiggy Instamart. But now Reliance representatives are continuously resigning from the board of Dunzo. Why after all ?

If we just look at the last 2 months, Ashwin Khasgiwala was the first to resign from the board of Dunzo. He is the Group Chief of Business Operations at Reliance Retail. After this, Rajendra Kamath, who is the Finance Head in Reliance Retail, resigned. In this way, the company with which Reliance wanted to gain a hold in the retail market, is now in a hurry to leave the same company.

Dunzo's growing crisis

The troubles of startup company Dunzo are increasing. First the company's co-founder and Chief Technology Officer Mukund Jha and now co-founder Dalveer Suri have resigned. Apart from this, many other investors like Lightrock India and Traxon have also resigned from the board. Meanwhile, the company has also received legal notices regarding its dues.

Dunzo has been struggling with cash crunch for a long time, due to which employees are not getting salaries on time. Since June, it has happened many times that employees have received their salaries late. At the end of September, the company laid off people on a large scale, due to which its staff count has now come down to less than 200.

Dunzo needs fresh funding. The company is also going through an overhauling process. Whereas recently it is expected to get fresh funding of 3 to 35 million dollars. The company has to bring down its monthly expenses. Currently it is 6 lakh dollars, which the company is thinking of halving.